MUMBAI: Japanese car makers Indian subsidiary Honda Cars India (HCIL), which has been losing market share due to the absence of diesel-powered cars, has lined up at least 3-4 diesel variants, including an entry-level sedan and a compact utility vehicle, over the next two to three years to claw back lost ground.

ET learned, the first off the block will be the entry-level sedan built on the Brio platform, code named 2TP,to take on Maruti Suzuki Dzire and eventually Jazz, City, the new MPV/SUV, and Brio, too, may be powered by 1.2 litre or 1.5 litre diesel engine, depending on the model.

Honda Cars India president and MD Hironori Kanayama declined to comment on the exact specification of the engine or which car they will power, but said: "We have very ambitious plans for diesel in the coming years. The new engine will drive all new models lined up for the future, including the new small sedan next fiscal. We hope to have at least 3-4 diesel models in the next two years, we are thinking of a sequence and which model we will fit the engine for the launch."

Kanayama said that the company has already invested in a diesel engine line at its Rajasthan plant, but declined to give the exact capacity or investment. He said, "We will produce as per the demand."

ET had reported in April, Honda intends to invest close to.3,000 crore for new products, engine facility and manufacturing line at its Rajasthan plant.

Kanayama said HCIL is exploring new segments of growth to enter into, including compact utility vehicles for future. "India is a small car market with over 50% of volume coming from compact cars. So we will explore all options,(sub-4 meter) sedans and utility vehicles. We will be looking at optimisation of the existing platform to reduce development time and cost," added Kanayama.

Honda Cars sold 54,427 cars in 2011-12,8.46% lower than FY11.Due to incremental volumes of Brio, in April to September of this fiscal, Honda Cars India has sold 34,440 units, a growth of 47% over last year.

The company was hoping to double annual sales to almost one lakh units this fiscal, led by Brio, but non-availability of diesel option and with the slowdown in overall market, it is likely to miss the target. The company has been averaging 2,500 units a month of its small car Brio this fiscal so far and it is hoping to touch 3,000 units this festive season.

HCIL has also kick-started exports of Brio to South Africa on Thursday in its endeavour to make India the exports hub for future.

The plan is to exports 1,600 units of Brio to South Africa this fiscal, but the company is hoping to increase it further by adding new models like City. At present the focus is on South Africa and the neighbouring African markets, the company is also exploring Brio exports to Asia Oceania region. "

"We do see India as a key export hub in the future. India fits well to offer 'best cost and best quality products and there was a demand for products in markets of South Africa and adjoining markets for a product like Brio. The exports numbers will help us in bringing economies of scale, which eventually the customer will benefit," added Kanayama.